Marcus Roberts Operates a Small Retail Establishment Determine the Effect on the Accounting Equation of the Adjusting

question 166

Essay

Marcus Roberts operates a small retail establishment.The following unadjusted amounts were taken from Roberts' accounting records at December 31,2017:
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$$\begin{array} { l r } \text { Accumulated Depreciation } & \$ 5,000 \\\text { Machinery } & 50,000 \\\text { Prepaid Advertising } & 1,200\end{array}$$ Determine the effect on the accounting equation of the adjusting entries at December 31,2017,for each of the transactions that follow:
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A. The advertising costs are for television commercials to be aired equally throughout December 2017 and January and February 2018. ?
B. The machinery had an original cost of $\$ 50,000$ and was purchased during 2016 . The estimated useful life is six years with an estimated salvage value equal to $\$ 8,000$ . Roberts uses the straight-line method of depreciation. ?

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